SIG University Certified Sourcing Professional (CSP) program graduate Lauren Redden shares an excellent essay on the power of AI to transform the smart sourcing industry, in balance with the potential risks that companies must evaluate in employing more intelligent automation into their processes.
One of the lessons that I found most interesting in the Certified Sourcing Professional Program through SIG University was in Week 4 regarding Artificial Intelligence (AI). The rapid advancements in AI have notably impacted various business functions, including procurement and sourcing. Businesses and organizations continue to strive to enhance efficiency, reduce costs, and gain a competitive edge, and AI technologies have begun to revolutionize the procurement landscape. In this paper, I will highlight the effects of AI on reporting, outsourcing, and contract management as we learned in the lessons. Additionally, I will examine the risks associated with adoption and the process to adapt it to existing procurement practices.
The recent CPO & Executive Virtual Series with Productiv, brought together industry experts to discuss critical topics in the world of procurement. Three keynote speakers, Amit Nath, IT Procurement Global Leader from American Honda Motor Company, Inc.; Dan Edwards, Procurement Director from Park National Bank; and Aashish Chandarana, Chief Information Officer of Productiv, shared valuable insights that shed light on the future of IT strategic sourcing, the significance of mentorship, and the latest SaaS trends in 2023.
Keynote Discussion on IT Strategic Sourcing - Amit Nath
Amit Nath, the IT Procurement Global Leader at American Honda Motor Company, Inc., began the keynote discussion by providing an overview of Honda's illustrious history. Having sold over 28 million units worldwide, generating a remarkable $132 billion in revenue, Honda has firmly established itself as an automotive industry leader.
Focusing on IT, Amit highlighted the company's vision to achieve fully autonomous products by 2026, underpinned by a $6 billion management portfolio. He also shared insights into Honda's evolution of the source-to-contract value chain process, which started as a 3-step process and has since grown to an impressive 7-step approach.
Beyond cost savings, Honda's procurement strategy centers on transformation and procurement excellence. Speed to market and ease of use are crucial factors for the company's North American operations, and they leverage a global procurement approach with a focus on awareness, investigation, and standardization.
In the recent May CPO & Executive Virtual Series hosted by SIG, we had the pleasure of welcoming esteemed speakers: Michael Koontz, Vice President of Strategic Sourcing & Business Leader at ATD Sourcing Solutions; Ruy Martins, Plant and Supply Chain Director at Urgo Medical; and Oren Salzman, Chief Procurement Officer at MetTel. The event was filled with engaging discussions and thought-provoking takeaways. Let's dive into the highlights!
Evolving Sourcing Strategies
Kicking off the day, Michael Koontz started the day with his insightful keynote presentation. He emphasized the need to think beyond contracts and understand the bigger picture of the business. Being at the decision-making table requires aligning with the company's vision and continuously educating ourselves. Plus, he shared some cool insights on using AI tools to make our sourcing processes more streamlined and efficient.
Transforming Traditional Purchasing
Next up, Ruy Martins took us on a journey of transforming traditional purchasing into strategic sourcing. He stressed the importance of taking a proactive approach, where strategy drives the company rather than being solely controlled by supply and demand. It was all about embracing Integrated Business Planning (IBP) and empowering the business to adapt and thrive. We were definitely inspired to think differently!
Unlocking Value and Streamlining Operations
Our last speaker, Oren Salzman, gave us a sneak peek into the world of MetTel. He shared invaluable insights on delivering value and going the extra mile. Oren emphasized the significance of creating a diverse environment that allows businesses to operate smoothly and optimize opportunities. We also dove into streamlining negotiation timelines, uncovering ways to make our processes more efficient. Who doesn't love a bit of optimization?
LavenirAI and SIG (Sourcing Industry Group) are excited to announce their new partnership as LavenirAI becomes the Procurement Metaverse Partner for SIG’s Global Summits. The partnership is a significant milestone for both LavenirAI and SIG as it highlights leadership in delivering Metaverse-ready technology to the Procurement world.
As the Procurement Metaverse Partner, LavenirAI will collaborate with SIG to bring cutting-edge technology to Procurement events, starting with the Procurement Technology Summit in Florida in April 2023. LavenirAI's technology will enable attendees to experience an immersive virtual environment that facilitates collaboration, engagement, and knowledge-sharing.
The partnership reflects the future importance of the Metaverse in professional development. As the world continues to shift towards remote work and virtual events, virtual training platforms like LavenirAI's are becoming more critical for professionals seeking to advance their skills and knowledge.
LavenirAI's partnership with SIG highlights its commitment to delivering the latest innovations and technologies to the Procurement profession. The partnership represents an exciting opportunity for LavenirAI to expand its reach and further establish itself as the leader in the Procurement training field.
The Metaverse has the potential to transform the way professionals learn and collaborate, providing an immersive and engaging environment that enables them to develop their skills and knowledge in a more interactive and efficient way. LavenirAI is at the forefront of this change, delivering Metaverse-ready technology for Procurement and helping professionals stay ahead of the curve, through on-going development opportunities.
SIG University Certified Sourcing Professional (CSP) program graduate Krollus Asaad shares how important it is to find trust in your procurement team and your business.
Krollus Asaad, Co-Op Procurement Analyst, The Bank of New York Mellon
Recently, SIG had the pleasure of hosting ProcureAbility experts David Latten of Logitech, Chris Shaffer of EyeCare Partners and Adrian Dragomir of REI for the December CPO & Executive Virtual Series. It was a very engaging discussion with many thought-provoking takeaways. Let's get into it!
David Latten, Head of Procurement and Supplier Diversity & Equality at Logitech International, opened the day by discussing his organization's supplier diversity initiatives. Logitech refreshed the program in 2020 and has since expanded exponentially. For example, previously, Logitech had no Black-owned businesses within its supply chain. and have since vastly grown their vendor base to include more diverse suppliers. Logitech has a goal of having a world-class supplier diversity program in place by 2026. As he stated, " Logitech's core value is equality, and your suppliers should reflect that".
Adrian Dragomir, Head of Procurement at REI Inc., was next to present as he looked at how layoffs have affected his team, the challenges of balancing the new players in the company and how to interact with them. Adrian's approach is to let partners know that they exist to help you, not here to do your job. He then discussed how his team is now like "wolves on prey" after adjusting to the changes. Finally, he explained why it is important to take into consideration all aspects of a company when making decisions related to staffing and personnel changes. When it comes to talent, Adrian says the most important thing for his team members is to get the job done.
Chris Shaffer, Sr. Director Procurement, Facilities & Biomedical Support at EyeCare Partners, closed the discussion by outlining his team's goals for 2023. He listed them out as:
SIG University Certified Third-Party Risk Management Professional (C3PRMP) program graduate Kyle Smith discusses the benefits of a strong third-party risk management team and what it can do for your organization.
Preparing for the challenges on the horizon with a host of resources to get a jump start on 2023!
A Flexible (and Fast!) Way to Get Certified Now
Did you miss our 2022 open cohort start dates? We have fast-track and self-paced options for all programs if open cohort semester timings do not work for your schedule! Have a large group from your organization interested in taking the program together? We also offer closed cohorts for groups of 20 or more that can start when it is best suitable for your team, and volume discounts are available!
Join Dylan Alperin, Head of Professional Services, Keelvar and Magnus Bergfors, Director of Product Marketing, Keelvar as they discuss the rise of the automation revolution and CPO insights and 2023 priorities Keelvar’s 2023 Voices of Sourcing Survey.
Supplier.io’s 5th State of Supplier Diversity Report revealed big changes in the primary drivers of supplier diversity. More and more companies see programs as a core component of their company culture, and executive and board support is at an all-time high.
Recently, SIG had the pleasure of hosting ProcureAbility experts Conrad Snover and Darshan Deshmukh for the December CPO & Executive Virtual Series. It was a very engaging discussion, with many thought-provoking takeaways. Let’s get into it!
Conrad, CEO at ProcureAbility, kicked off the exclusive event by explaining the team's research methodology. ProcureAbility regularly conducts research to identify future-looking trends and innovations in procurement. Their in-depth process for identifying the five bold predictions for 2030 consisted of a team of experts who hypothesized on emerging trends and then conducted in-depth research to validate that analysis. The team formulated their predictions for procurement in 2030 based on that data. Then finally, they surveyed CPOs to get feedback on those predictions, which led us to procurement on the brink of transformation.
ProcureAbility's Five Bold Predictions for the Future of Procurement
Whenever we face a crisis, our attention is understandably focused on finding a solution as quickly as possible. We, in essence, become "locked in the moment" because the fallout of inaction is usually significant.
However, in our hasted energy to resolve a problem, we tend to lose sight of why we are in this situation in the first place. In other words, there is a bigger picture beyond our narrow scope of immediate impact, and we need to recognize its importance.
I like to think of it as the slow-leak tire syndrome. You have a tire with a slow leak and must repeatedly pull into a service station to fill it to the proper inflation rate. Is it an inconvenience-absolutely, but is our frequent station stops enough of a hassle to prompt us to either repair or replace the tire?
When I was originally asked to write this article on the disruptive impact a potential West Coast port workers' strike would have on supply chains, the slow-leak tire analogy immediately came to mind.
A Long Time in The Making
The contentious situation we are now facing at this and other ports in North America has been brewing for some time, pre-dating the COVID-19 pandemic.
 (1).png?PUAYrNzEXPEZkMHasUICrvwqHHw7YJvz= "Recap of CPO & Executive Virtual Series with Productiv")
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 (1).png?mzQi_tBTjjjN2vtPULuF9oFXM95_jRoz= "LavenirAI x SIG Procurement Metaverse Partners")
 (1)_8.png?0ULcZu7irZRrRFbAX5t7Iy4w7PM06XaC= "The Art of Establishing Trust")
 (1).png?DrOGWL5AV_Ba0f1ovUHFtazaPm5d1WkJ= "Recap of February CPO & Executive Virtual Series")
 (1)_4.png?woiBeOtFRNODFvb2a722jfSCES2aW6OJ= "Expanding Your Own Third-Party Risk Team")
 (1).png?ZkUSeAPoMp6ByWsuvcmzjepeeFra4zPF= "This Month at SIG – January 2023")
 (1).png?urXsitXC_CHk6ZZl1UsH7oXFUCKW2qcu= "Recap of CPO & Executive Virtual Series with ProcureAbility")
 (1).png?55Ov1NrFRJVg_eZxkzMMz_ocoXREYR67= "When it comes to the contention between management and the port workers, addressing the latter's fears regarding job loss is the real supply chain disruption for which we have to find a solution. Until we do that, we will likely be having this same discussion with the next global crisis.")
The Future of Procurement and Sourcing: The Effects of Artificial Intelligence in the Industry
SIG University Certified Sourcing Professional (CSP) program graduate Lauren Redden shares an excellent essay on the power of AI to transform the smart sourcing industry, in balance with the potential risks that companies must evaluate in employing more intelligent automation into their processes.
One of the lessons that I found most interesting in the Certified Sourcing Professional Program through SIG University was in Week 4 regarding Artificial Intelligence (AI). The rapid advancements in AI have notably impacted various business functions, including procurement and sourcing. Businesses and organizations continue to strive to enhance efficiency, reduce costs, and gain a competitive edge, and AI technologies have begun to revolutionize the procurement landscape. In this paper, I will highlight the effects of AI on reporting, outsourcing, and contract management as we learned in the lessons. Additionally, I will examine the risks associated with adoption and the process to adapt it to existing procurement practices.